AIG Buys 35% of Convex as Onex Leads $7 Billion Takeover

Deal terms and structure

American International Group said it will purchase a 35 percent equity stake in Convex Group, joining Canadian asset manager Onex in a transaction that values the Bermuda-based specialty insurer at about 7 billion dollars. Onex will become majority owner with roughly 63 percent, while Convex management will retain the balance. The parties expect the deal to close in the first half of 2026, subject to regulatory and other customary conditions.

Who advised whom

Advisory benches are set. Morgan Stanley is advising AIG, Evercore is working with Convex, and Goldman Sachs is advising Onex, according to the companies. Those roles underscore the complexity of merging a global specialty platform with a new ownership split that keeps management aligned.

Why specialty insurance, why now

The acquisition positions AIG deeper in specialty lines where pricing is often less commoditized, underwriting cycles are more idiosyncratic, and distribution relies on broker relationships. For AIG, a 35 percent stake in Convex broadens access to niches such as excess and surplus, energy, marine, aviation, political risk, and select reinsurance. The Onex-led $7 billion takeover creates a capital partner that can invest through cycles, while retaining the underwriting culture that Convex touts as a differentiator.

How the consideration lines up

Reuters reporting pegs AIG’s outlay for its share near 2.1 billion dollars inside a $7 billion enterprise deal led by Onex, with the remainder funded by the majority buyer and management roll-over. Structure and pricing details were not fully disclosed at announcement, but the proportions mirror the post-closing cap table: Onex near 63 percent, AIG 35 percent, management the rest.

Strategic fit with AIG’s portfolio

AIG has been reshaping its mix, selling down Corebridge in life and retirement and leaning harder into commercial P&C risk where underwriting improvements have supported margins. A minority but influential stake in Convex lets AIG participate in specialty growth without absorbing full integration risk. The investment offers optionality: quota share arrangements, product co-development, or distribution partnerships, while the Convex brand and management team continue to operate with autonomy.

What Convex brings

Founded by seasoned industry executives, Convex has built a book across specialty insurance and reinsurance with a focus on disciplined underwriting and volatility control. The company’s Bermuda platform and London market presence provide access to global risk pools where pricing can reflect technical differentiation. For Onex, the appeal is a scaled specialist with room to expand; for AIG, the appeal is targeted exposure and potential capital-light earnings via shares of profit from a diversified specialty portfolio.

Closing timeline and approvals

The parties target completion in the first half of 2026. Regulatory reviews will span multiple jurisdictions, including Bermuda and the United Kingdom. Antitrust and prudential supervisors will assess market impact, capital plans, and governance. Given the ownership split and the intent to preserve Convex’s operating model, approvals are expected to focus on financial stability and conduct rather than integration.

Market reaction and broker read-through

Specialty peers tend to re-rate on credible signals of capital discipline and consolidation. Brokers may see modest volume uplift as product suites expand and joint offerings develop. For buyers of specialty coverage, the key question is capacity: whether the Onex $7 billion takeover and AIG 35 percent position translate into steadier limits through the cycle, or if underwriting appetite remains selective as pricing normalizes from recent hard-market peaks.

Financing and potential capital links

Press materials and third-party summaries indicate AIG may pair the equity purchase with investment relationships alongside Onex funds, which can support portfolio yield while aligning interests with the new majority owner. That structure, common in sponsor-strategic partnerships, can make earnings accretive sooner if underwriting results and investment income track to plan. Details remain subject to final documentation.

Integration risk, or lack thereof

Because Convex continues as a standalone platform with existing leadership, execution risk is centered on governance, capital allocation, and underwriting discipline rather than full operational merger. The parties have an incentive to maintain Convex’s speed and selectivity while still exploring product, data, and reinsurance links with AIG that can add scale benefits without slow-moving bureaucracy.

What to watch next

Three milestones will shape the story. First, regulatory filings that outline any quota share or distribution agreements between AIG and Convex. Second, updates on Convex’s growth targets and combined ratio guidance under the new ownership. Third, closing conditions and timing as supervisors work through reviews. If the transaction clears on schedule, the Onex $7 billion takeover paired with AIG’s 35 percent stake could reset competitive dynamics in select specialty classes heading into 2026.